How much simple interest would be paid on a loan of $5450 at 10.55% for 195 days? Round your answer to the nearest cent. Note: Assume 365 days in a year and 30 days in a month.

Answer 1

195/365 x .1055 x 5450 = 307.178 = $307.18

195/335 = 0.53425, over half a year

0.53425 x .1055 = .056363

.056363 x 5450 = 307.18